Page 50 - Banking Finance April 2025

ARTICLE

Ethanol - A Potent

Weapon to Reduce

Carbon Emissions

Arun K Bhardwaj
Chief Manager (Research)
State Bank Academy
Gurugram

The World Energy Forum has forecasted that fossil fuels are under high pressure of shortage and
can deplete in the coming decades. Also, use of fossil fuels has led to adverse effects on the global
climate. Such an alarming situation has led policymakers to think about alternate ways of energy
generation.

R ecently, the Govt of India announced that it intends One of the methods which the Govt of India is adopting to
achieve its target of Net Zero emission by 2070, is by blend-
to blend 20% ethanol in petrol by the year 2025.
Simultaneously, there were announcements by a
of March 2024, about 98% of the fuel requirement of the
couple of auto majors about launching models of vehicles ing ethanol with petrol. It is noteworthy to mention that as
capable of running on flex fuels (fossil fuels blended with road transport sector wais being fulfilled by fossil fuels while
biofuels like ethanol). Ethanol blending with fossil fuels once only 2% was being fulfilled by biofuels like ethanol. The above
again became the talk of the town. We all know that en- data from Govt of India highlights the huge potential avail-
ergy demand across the world is increasing day by day due able to reduce our carbon emissions by replacing/blending
to development of the global economy. Fossil fuels are the fossil fuels like petrol with biofuels like ethanol.
primary energy sources which account for bulk of the world's
energy consumption. Ethanol is a major biofuel which is being increasingly used
to reduce carbon emissions. It is mainly produced from natu-
The World Energy Forum has forecasted that fossil fuels are ral sugars (obtained from raw materials like sugarcane,
under high pressure of shortage and can deplete in the com- maize, rice etc) by means of fermentation done with yeast
ing decades. Also, use of fossil fuels has led to adverse ef- or through a process called ethylene hydration. Apart from
fects on the global climate. Such an alarming situation has being used as a biofuel, it also has various industrial uses
led policymakers to think about alternate ways of energy like being used as a chemical solvent as also in the synthesis
generation. The Government of India is also pushing for of various organic compounds. Ethanol is also used in the
greater adoption of renewable power in the country. The medical field as a disinfectant and as an antiseptic.
Central Govt has set a target of achieving Net Zero carbon
emission by the year 2070. Brazil is a country that has been a huge success as far as

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